Television digest with electronic reports (Jan-Dec 1953)

Trade Report October JO, 1953 — — TV PRODUCTION UP, INVENTORIES DOWN: Most gratifying feature of TV picture is not only high production level but fact that inventories have fallen correspondingly. Little-noticed in acclaim for high output, inventories at all levels fell average 10% in both Aug. and Sept., stood at slightly above 500,000 at factory at end of Sept., with RETMA spokesman estimating about 1,400,000 TVs in all pipelines. It's important evidence of healthy status of TV trade, as sales eat into production, not only in new markets but in big pre-freeze markets as well. In fact, RETMA spokesman attributed upsurge in old-market sales as one of biggest factors contributing to declining inventories. He ventured the opinion that second-set and replacement markets were finally taking hold as a factor to be reckoned with. Happy situation was duly noted this week by Sylvania pres. H. Ward Zimmer. Speaking at cornerstone-laying of Sylvania's new TV plant at Batavia, N.Y. , he said good inventory condition resulted from greater coordination between factory, dealer and distributor in keeping inventories at bare minimum, added: "Like any relatively new industry whose products obtain unprecedented public acceptance, the TV industry has had its share of growing pains. In 1950 and 1951, for example, factory production got out of line with demand, and the industry succeeded in producing its own recession. "Now that better information is available and is more effectively studied and utilized, the possibilities of the industry and the ultimate consumer getting out of phase with one another have been considerably decreased." Radio inventories present a different picture. They have been rising slowly in last 2 months, standing at about 660,000 at factory level at end of Sept, and the prospect is that some cutbacks in production in fourth quarter may be necessary to head off possibility of "dumping" in first quarter of next year. T l'T* Coupled with low TV inventories has been continuing high production. Output for 9 months ended Oct. 2, including 5-week Sept. , was about 5,590,000, compared to 3,670,591 in first 9 months of 1952. Notwithstanding possibility of some TV output cutback in final quarter, total 1952 production of 6,096,279 seems likely to be surpassed by end of Oct., leaving 2 full months, including 5-week Dec., to shoot for 1950’s record production of 7,463,800. It’s doubtful that production this year will beat that record, most industry "guesstimates" now ranging from 7,000,000 to 7,200,000. Nine-month output in 1950 was 5,028,200. Earlier fears of overproduction seem to be pretty well shot. No major TV manufacturer plans to cut back in the final quarter, though some smaller companies, notably Hallicraf ters , have announced moderate reductions in output. Motorola, for one, has scheduled 25-30% increase in production over 4th quarter of 1952. Spokesman said third-quarter Motorola sales were 25% above same period last year. Some companies are already announcing plans for next year. Sylvania, DuMont & Magnavox all anticipated increased TV production in 1954 in statements this week. * # $ * TV production totaled 170,685 (8483 private label) week ended Oct. 2, up from 161,995 preceding week and 158,726 week ended Sept. 18. It was year’s 39th week, final week cf third quarter by RETMA calculations, and brought Sept, output to about 790,000 and quarter to about 1,710,000. Radio production totaled 250,399 (82,518 private), down from 266,307 in the week ended Sept. 25 and 259,681 week before. It brought Sept, production to about 1,300,000 and quarter output to approximately 3,000,000. Radio output for year to date totaled about 10,200,000. 9